Asset Definition

3.1 The Asset

Intellectual property is not the same as physical property, but the value of intellectual property is just as important

What is an asset?

Definition

A tangible or intangible object with abstract value that is owned or controlled by an organisation

Purpose

To enable operations for the organisation or provide outcome value for the organisations stakeholders

The asset in the CUBE® Framework context

An asset can be many things in different contexts, both tangible and intangible, such as real estate, equipment, stocks, patents, hardware, etc. The common thing for all assets is that they hold some kind of value for its owner. The value can be in the present or a future expectation of value.

However, in the CUBE® Framework context asset refers to the intangible objects and systems that enables an organisation to function. In practice, an asset is an intellectual product that is documented with the purpose to clarify a specific object or practice within an organisation.

An asset is fairly similar to what is typically referred to as Capability, but an asset has a wider scope. Most assets can be capabilities, but in the CUBE® Framework context, an asset can also include documents, models, lists, etc. To the right are a couple of example assets in the CUBE® context.

Example assets

Strategy
Values
Budget Process
Project Portfolio
Financial Model
Information Security Management

Assets are organised in the organisation layers

The tangible connection between the CUBE® Framework theory and practical use is through Assets. All intangible organisation objects and definitions or descriptions of practices are each an isolated asset within the organisation.

The assets have been organised into each layer of the CUBE® organisation. There are no assets existing outside a layer and an asset can only exist in one layer.

The purpose of this is to an anchor all assets into a hierarchy to aid the understanding of the order of the relationship between the assets as well as clarify accountability on a high level.

Each asset is dependant on assets in a higher layer. This means that the asset in the higher levels sets the tone or defines how a lower level asset can and should be defined and implemented. The layers also gives guidance to who is accountable for each asset, referring to who has the mandate to decide or change and asset.

For example: Strategy exists within the Ownership layer. This automatically provides the information that the Strategy is dependant on the assets in the Stakeholder layer, and the assets in the underlying layers are dependant on the Strategy. It also provides the information that the owners are responsible for the Strategy. Even though other individuals within and outside the organisation might work to create and execute the strategy, the owners always have the authority to approve, reject or change the Strategy.

To enable mutual interpretation, the asset must be written down

A lot of objects and practices within a company exists and could very well function optimally without being written down. But they do not become an asset until they are written down, meaning they do not have any structural value.

The two main reasons for this are:

Information and knowledge existing only in individuals’ minds do not hold any value
It is difficult to reach mutual interpretation for complex subjects using only verbal communication

Information and knowledge existing only in individuals’ minds do not hold any value

Let’s say you have an organisation that is operating as any arbitrary organisation in today’s context. If nothing is written down and all employees leave the company is completely unavailable (imagine them all dead if that helps) and you are able to find a new workforce the day after, all possibility for the company to produce any outcome value disappears instantly. Restarting operations would be a extremely difficult effort as everything would need to built up from scratch more or less, imagine the nightmare.

It is of course not realistic or practical to have everything written down. But let’s say that all the important objects and practices within the organisation are documented and available. Even if your operations close down, the organisation still has a value in the form of structural value that defines how the organisation should operate that can be used to restart the organisation without having to do it from scratch.

Retaining knowledge in the organisation increases resilience

A more realistic scenario is that employees on a regular basis leave the company, if the knowledge is not documented down, they leave with some of the structural value of the organisation.

Another value of documenting objects and practices into assets is that it enables reuse. Lets say you are starting your business in a new location. Instead of having the new employees observing the existing employees and then travelling to the new location and try to mimic the operations, you would have an already defined way of working that can be scaled and used for future openings of new locations.

The asset, if proven effective can even be sold as a free-standing product to generate a new source of income.

It is difficult to reach mutual understanding for complex subjects using only verbal communication

People have unique genes, backgrounds, knowledge and abilities which create individual lenses that each and everyone of us views the world through. This means that regardless of how clear and obvious something might seem for you, there will always be another view that is either slightly or completely different (even twins do not agree on every topic).

Since collaboration is the key to any successful organisation and to enable effective collaboration individuals must have a shared world view. In practice this is more or less impossible, especially in large and diverse organisations but that doesn’t mean that the strive should be discarded. It means that it is an always ongoing and iterative process to get as close to a mutual agreement of the perception of an idea.

To enable this iterative process, there must be something to agree or disagree upon that is consistent over time. A verbal agreement leaves out a lot of information and is very difficult to go back to review what was agreed upon, especially if you were not part of the discussion.

Therefore, it must be written down in format that is understandable and accessible for all that are affected by its content. Of course there might be a need for additional activities such as communication, training, Q&As, etc. But none of these are possible without some type of written agreed upon “truth”.

There are of course more benefits but these are the two main ones for turning your unique organisational knowledge into assets by writing them down in a structured format.

An Asset is one or a combination of several written documents that can be agreed or disagreed upon

The CUBE® Framework is a system of assets in the form of agreed upon documents that are organised into the CUBE® organisation layers to clarify responsibilities and relations between the assets.

In the CUBE® Framework, an Asset refers to one or a combination of several documents that together represents an organisational object or discipline.

Next Step

Read more about how assets are organised in the Asset Structure…

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